Startup Professionals Musings

FEBRUARY 15, 2015

Angel investors and venture capitalists don’t make equity investments in non-profits. Obviously, these companies still need money to get started, or finance growth, just like a for-profit company. What options do they have available to them, since they can’t sell a share of the company (no equity investment)?

Angel Investor 120

Angel Investor Equity Technical Review Exit Strategy 120

Startup Professionals Musings

SEPTEMBER 15, 2012

Obviously, these companies still need money to get started, or finance growth, just like a for-profit company. What options do they have available to them, since they can’t sell a share of the company (no equity investment)? There is no discussion of equity, or return on investment. Individual and institutional donations.

Angel Investor 218

Angel Investor Technical Review Exit Strategy Equity 218

Startup Professionals Musings

JULY 3, 2011

Obviously, these companies still need money to get started, or finance growth, just like a for-profit company. What options do they have available to them, since they can’t sell a share of the company (no equity investment)? There is no discussion of equity, or return on investment. Individual and institutional donations.

Angel Investor 238

Angel Investor Technical Review Exit Strategy Equity 238

Up and Running

SEPTEMBER 19, 2017

When you accept outside money, particularly a private equity (PE) investment, however, that changes. In this article, I’ll provide some personal stories of how investors have navigated the balance between raising private equity capital and not losing control of their startup. You make all the decisions, when you want, how you want.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

Steve Blank

OCTOBER 7, 2011

Ironically one of the things that’s holding back the Finnish cluster is Tekes , the government organization for financing research, development and innovation in Finland. It’s hard enough to pick which existing companies with known business models to aid.

Finland 325

Finland Venture Capital Government Russia 325

The Startup Magazine

JULY 1, 2022

The three main components of a company are production or service, marketing and sales, and finance. Production or service is the business’s core activity, which generates revenue. Finance is how you manage your finances, including budgeting, accounting, and bookkeeping. Financing Your Startup.

Technology 139

Technology Venture Capital Finance Startup 139

David Teten

AUGUST 19, 2019

This structure offers some of the benefits of traditional equity VC, without some of the negatives of equity VC. I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. We don’t have any equity or control over the business….”. “As Bigfoot Capital.

Revenue 60

Revenue Technical Review Software Review Equity 60

Tim Keane

MARCH 9, 2011

. | How to prepare a sales forecast for a business plan » March 09, 2011. How should I finance my new venture? It’s a deceptively simple question:  what is the optimal way to finance a new startup? This seems like an easy topic – debt where there is appropriate cash flow, equity when there isn’t. 

Finance 83

Finance Bootstrapping Startup Equity 83

Steve Blank

MARCH 31, 2014

Cheered on by finance professors, Wall Street analysts, investors and hedge funds, companies have learned how to make metrics like Internal Rate of Return look great by one; outsourcing everything, two, getting assets off their balance sheet, and three only investing in things that pay off fast. We legalized robbing the corporate treasury.

Private Equity 326

Private Equity Metrics China Intellectual Property 326

Steve Blank

APRIL 26, 2022

They offered desperate founders more cash but insisted on new terms, rewriting all the old stock agreements that previous investors and employees had. For existing investors, sometimes it was a “pay-to-play” i.e. if you don’t participate in the new financing you lose. A cram down is different than a down round. They’re Back.

Cram Down 408

Cram Down Founder Venture Capital Recapitalization 408

Hearpreneur

JANUARY 1, 2023

Make a budget and keep a close watch on the finances , ensuring that there are no unnecessary expenses. Our teams and employees are our biggest support during an economic downturn. Tighten up your business by focusing on team wellness and feedback before the recession hits. Thanks to Corey Philip, Acumen Equity Advisors ! #7-

Entrepreneur 96

Entrepreneur Software Review Technical Review Revenue 96

www.inc.com

SEPTEMBER 24, 2011

Small Business Success | Mondays and Thursdays. The Goods: Your Business Toolbox | Thursdays. Finance | Tuesdays. Todays Small Business News | Daily. Financing a Small Business. Buying a Small Business. RUNNING A BUSINESS. Financing A Small Business. Business Taxes.

Arizona 40

Arizona Equity Iowa Venture Capital 40

genylabs.typepad.com

SEPTEMBER 24, 2011

Working for Equity Instead of Cash. has an article on service firms waiving their fees and instead taking equity in their clients. Interest in this waned when the Internet bust resulted in most tech start-up equity becoming worthless, but it seems to be coming back. Not all start-up stock is created equally.

Equity 40

Equity Technical Review San Jose Stock 40

Startup Professionals Musings

JUNE 6, 2010

Obviously, these companies still need money to get started, or finance growth, just like a for-profit company. What options do they have available to them, since they can’t sell a share of the company (no equity investment)? There is no discussion of equity, or return on investment. Individual and institutional donations.

Angel Investor 143

Angel Investor Technical Review Exit Strategy Equity 143

Steve Blank

MARCH 4, 2014

The Enterprise: Business Model Execution We know that a startup is a temporary organization designed to search for a repeatable and scalable business model. The corollary for an enterprise is: A company is a permanent organization designed to execute a repeatable and scalable business model.

IRR 335

IRR Startup Business Model Agile 335

ReadWriteStart

SEPTEMBER 10, 2010

Whether it is credit or equity, funding is very, very tight. VCs ONLY want to invest in momentum deals, which means you already have serious customer validation and traction and you are looking to raise money to scale your business. I call it drip-financing. In 1M/1M, our preferred financing strategy is customers.

Cloud 115

Cloud Silicon Valley Incubator Finance 115

Steve Blank

APRIL 14, 2013

business models. Even though they’re next to Zhongguancun, the hottest place for startups in China, there seems to be a lower appetite for risk, a lack of interest in equity (instead optimizing for a high salary) and very little loyalty to any one company. Turnover of employees in capital in Beijing is very high.

China 324

China Silicon Valley Non-Compete Intellectual Property 324

Seeing Both Sides

AUGUST 28, 2017

But once entrepreneurs have their initial team and product in place, a few smart advisors around the table and the social proof required to attract great talent, why would they raise additional dilutive equity capital if they can raise non-dilutive capital through the sale of tokens? Shift of value from equity holders to token holders.

Early Stage 20

Early Stage Equity Venture Capital Government 20

Seeing Both Sides

AUGUST 28, 2017

But once entrepreneurs have their initial team and product in place, a few smart advisors around the table and the social proof required to attract great talent, why would they raise additional dilutive equity capital if they can raise non-dilutive capital through the sale of tokens? Shift of value from equity holders to token holders.

Early Stage 20

Early Stage Equity Venture Capital Government 20

ReadWriteStart

OCTOBER 13, 2011

Ironically one of the things that's holding back the Finnish cluster is Tekes , the government organization for financing research, development and innovation in Finland. It's hard enough to pick which existing companies with known business models to aid.

Finland 158

Finland Venture Capital Government Russia 158

David Teten

JANUARY 11, 2020

In the venture capital/private equity business, investors are B2B microinfluencers. Other coinvestors: Limited partners, other VCs who are coinvestors, private equity funds which are potential growth-stage investors, etc. High-potential prospective employees of portfolio companies. I only link to people whom I’ve met.

Social Media 60

Social Media Technical Review Media Private Equity 60

Growthink Blog

MAY 10, 2012

When seeking equity investments, the source of capital is, for the most part, tied to the stage of capital being raised. You see, equity capital is raised in stages or rounds. Mezzanine Financing Most companies that raise equity capital and are eventually acquired or go public receive multiple rounds of financing first.

Equity 88

Equity Mezzanine Later Stage Venture Capital 88

Hearpreneur

DECEMBER 18, 2022

This new agency will help companies to engage their employees with interactive training. In the end, giving employees a good learning experience. 8- Service for AI business analysis. There will always be a need for new features, products, and services for your firm because businesses and procedures change every day.

Affiliate 62

Affiliate United States Entrepreneur Software Review 62

Steve Blank

APRIL 14, 2013

business models. Even though they’re next to Zhongguancun, the hottest place for startups in China, there seems to be a lower appetite for risk, a lack of interest in equity (instead optimizing for a high salary) and very little loyalty to any one company. Turnover of employees in capital in Beijing is very high.

China 216

China Silicon Valley Non-Compete Intellectual Property 216

ReadWriteStart

FEBRUARY 18, 2020

But that doesn’t mean that you need to give away equity in your business or seek out external funding. During the early stages of your business, it’s possible to rely on credit cards and the personal savings of startup founders as you get things up and running. Hire for Attitude.

Bootstrapping 145

Bootstrapping Startup Cofounder Angel Investor 145

David Teten

JULY 14, 2014

During her tenure, the fund grew from $15 billion to $150 billion in AUM and from 200 to 1400 employees. However, as always in a period of change, innovative business models emerge and financial technology is more and more at play as critical enablement of innovation. population, will turn 62 or older by 2020 ( www.census.gov ).

Management 114

Management Portfolio Institutional Investors Government 114

Up and Running

AUGUST 28, 2018

Financial summary: Explain your business model, startup costs, revenues, and liabilities to the company. First, your business plan laid out the opportunity at hand. Now is the time to lay out what you’ll do to attract patients and set up a viable business model with healthy financials. Be specific.

Business Plan 72

Business Plan Technical Review Exit Strategy Oregon 72

Steve Blank

APRIL 1, 2020

Remember, a year from now no one wants to be the CEO of a company out of business whose lament is, “I did what the board told me to do.”. This plan has three parts: Pivots to your new business model, changes to your operating plan, and what initiatives you save for the recovery. Try to protect the most vulnerable employees.

South Korea 333

South Korea Salary Business Model China 333

YoungUpstarts

JULY 18, 2019

Most entrepreneurs are led to believe that successful business models prosper quickly and easily. However, in a study by Statistic Brain, “ Startup Business Rate by Industry Business ” the failure rate of all U.S. by Chris Grey, co-founder and COO of CapLinked.

Product 147

Product Entrepreneur Private Equity Cofounder 147

abovethecrowd.com

OCTOBER 17, 2013

Early this year Amie Fineberg, who has been my amazing assistant for over 10 years, mentioned that she and several other employees at Benchmark had fallen in love with a new ecommerce service, and that I might want to check it out. Dell’s product offering advantage, building to custom order, simultaneously created a business model advantage.

eCommerce 62

eCommerce Technical Review North America San Francisco 62

Austin Startup

AUGUST 20, 2017

They’re looking to be paid properly in the context of the overall salary structure, including cash, benefits, and equity, and to be paid commensurate with performance. Startups often hand out shares, options, and warrants for employees and for contractors rendering needed services. Can you acquire them at a sustainable cost?

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

VC Cafe

FEBRUARY 27, 2024

While the answers are somewhat semantic, the pre-seed funding round is making a comeback in 2024 startup financing. In smaller funds, ticket sizes tend to be lower, so pre-seed is the only stage where micro funds are able to secure their minimum equity targets. Pre-seed tends to be about developing an MVP and generating early traction.

Valuation 186

Valuation Software Review Generative AI Technical Review 186

Tim Keane

JANUARY 12, 2010

The investors and the entrepreneurs are – or should be – aware that the price of the company’s equity is set by the market – in simplest terms, what an informed buyer is willing to pay.   As a starting point, these become market comparable discussions based on other similar transactions within a recent timeframe and similar business.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Up and Running

OCTOBER 24, 2016

The goal for a lifestyle business is to build sustainable revenue streams that are set up to operate on their own. This can be done with many types of business models, but all of them must be able to scale beyond a linear relationship between dollars you earn and hours you work. See Also: Do You Really Need Full-Time Employees?

Startup 60

Startup Venture Capital Salary Equity 60

Altgate

SEPTEMBER 16, 2010

But did you know that founder Markus Frind has just 3 employees for his $10MM+ revenue business? For example, you can barter for a service or you can negotiate payment terms or even equity for service. Lastly, a hybrid model makes sense for many types of agreements (NDAs, employment contracts, supplier agreements, etc.)

Software Review 65

Software Review Offshore Startup Boston 65

Steve Blank

SEPTEMBER 14, 2009

3) invest in and take equity stakes in exchange for capital. In theory when you went public, everyone’s shares were now tradable on the stock exchange, but usually the underwriters required a six month “lockup” when company insiders (employees and investors) couldn’t sell. times the last whole business and credit cycle.

Silicon Valley 223

Silicon Valley IPO Technical Review Venture Capital 223

The Equity Kicker

JULY 8, 2019

This is what brings us to the second big difference: the cost of Applied Venture is too large to finance from a standard VC management fee. . Different funds finance the cost of these teams with a differing weighting of asking portfolio companies to pay for services, larger than normal management fees, and reduced compensation for partners.

Portfolio 84

Portfolio LP Venture Capital Partner 84